Accounting Policies of Polycon International Ltd. Company

Mar 31, 2024

2 SIGNIFICANT ACCOUNTING POLICIES,

ASSUMPTIONS AND NOTES

2.1 BASIS OF PREPARATION

2.1.1 Ministry of corporate affairs has notified roadmap to
implement IND AS notified under Companies (Indian
Accounting Standard) Rules 2015 as amended by
the Companies (Indian Accounting Standard) Rules
2016. And according to the said roadmap the
company is required to apply IND AS in preparation
of financial statements from the financial year
beginning from 1^st April 2017.

2.1.2 The Company has prepared its financial statements
as per the IND AS as applicable to the company from
the financial year beginning on April 1,2016 .

2.1.3 The significant accounting policies used in preparing
the financial statements are set out in Notes to the
Standalone Financial Statements.

2.1.4 The preparation of the financial statements requires
management to make estimates, judgements and
assumptions. Actual results could vary from these
estimates. The estimates, judgements and underlying
assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision
effects only that period or in the period of the revision
and future periods if the revision affects both current
and future years . The management believes that the
estimates used in preparation of the financial
statements are prudent and reasonable.

2.1.5 Amounts in these financial statements have, unless
otherwise indicated, have been rounded off to ‘rupees
in lakhs ''upto two decimal points.

2.2 Statement of Compliance

The financial statements comprising of the Balance
Sheet, Statement of Profit and Loss, Statement of
changes in equity, Statement of Cash Flow together
with notes comprising of a summary of Significant
Accounting Policies and Other Explanatory Information
for the year ended 31st March 2024 and comparative
information in respect of the preceding period have
been prepared in accordance with IND AS as notified
and duly approved by the Board of Directors, along
with proper explanation for material departures.

2.3 ACCOUNTING POLICIES

2.3.1 Basis of Measurement

The standalone financial statements have been
prepared on accrual basis and under the historical
cost convention except following which have been
measured at fair value:

a. Financial assets and liabilities except those carried at
amortised cost

b. Defined benefit plans - Plan assets measured at fair
value

The standalone financial statements are presented in
Indian Rupees, which is the Company''s functional and
presentation currency.

2.3.2 Current versus non-current classification

The Company presents assets and liabilities in
statement of financial position based on current/non-
current classification.

The Company has presented non-current assets and
current assets before equity, non-current liabilities and
current liabilities in accordance with Schedule III,
Division II of Companies Act, 2013 notified by MCA.

An asset is classified as current when it is:

(a) Expected to be realised or intended to be sold or
consumed in normal operating cycle,

(b) Held primarily for the purpose of trading,

(c) Expected to be realised within twelve months after the
reporting period, or

(d) Cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve
months after the reporting period

All other assets are classified as non-current
A liability is classified as current when it is:

(a) Expected to be settled in normal operating cycle,

(b) Due to be settled within twelve months after the
reporting period, or

(c) There is no unconditional right to defer the settlement
of the liability for at least twelve months after the
reporting period. All other liabilities are classified as
non-current.

The operating cycle is the time between the acquisition
of assets for processing and their realisation in cash
or cash equivalents. Deferred tax assets and liabilities
are classified as non-current assets and liabilities.

2.3.3 Inventories

Inventories are valued at the lower of cost and net
realisable value.

Costs incurred in bringing each product to its present
location and condition are accounted for as follows :

Raw Materials: Cost includes cost of purchase and
other costs incurred in bringing the inventories to their
present location and condition. Cost is determined on
first in first out basis.

Finished Goods and Work in Progress: Cost includes
cost of direct materials and labour and a proportion of
fixed manufacturing overheads based on the normal
operating capacity. Cost is determined on first in first
out basis.

Traded Goods: Cost includes cost of purchase and
other costs incurred in bringing the inventories to their
present location and condition. Cost is determined on
first in first out basis.

Net realisable value is the estimated selling price in the
ordinary course of business, less estimated costs of
completion and estimated costs necessary to make
the sale.

2.3.4 Statement of cash flows

Cash flows are reported using the Indirect method
as prescribed in IND AS 7 ‘Statement of Cash flows'',
where by net profit before tax is adjusted for the
effects of transactions of a non-cash nature, any
deferrals or accruals of past or future operating cash
receipts or payments and item of income or expense
associated with investing or financial cash flows.
The cash flows from operating, investing and
financing activities of the Company are segregated.

2.3.5 Revenue recognition and other income

• Effective April 1,2018, the Company has applied Ind
AS 115 which establishes a comprehensive
framework for determining whether, how much and
when revenue is to be recognised. Ind AS 115 replaces
Ind AS 18 Revenue and Ind AS 11 Construction
Contracts. The Company has adopted Ind AS 115
using the cumulative effect method. The effect of
initially applying this standard is recognised at the
date of initial application (i.e. April 1,2018).The impact
of the adoption of the standard on the financial
statements of the Company is insignificant.Revenue
is recognised upon transfer of control of promised
products or services to customers in an amount that
reflects the consideration which the Company
expects to receive in exchange for those products
or services.

Revenue is measured based on the transaction price,
which is the consideration, adjusted for volume
discounts, service level credits, performance
bonuses, price concessions and incentives, if any,
as specified in the contract with the customer.
Revenue also excludes taxes collected from
customers

Other income

a Interest

• Interest income is accrued on a time basis, by
reference to the principal outstanding and at the
effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset''s net carrying amount on initial recognition.

2.3.6 Property, Plant and Equipment

Property, plant and equipment are tangible items
that:(a) are held for use in the production or supply
of goods or services, for rental to others, or for
administrative purposes; and(b) are expected to be
used during more than one period.

Items such as spare parts, stand-by equipment and
servicing equipment are classified as inventory since
they do not meet the definition of PPE.

Initial recognition: The initial cost of property, plant
and equipment comprises its purchase price, including
non-refundable purchase taxes, and any directly
attributable costs of bringing an asset to working
condition and location for its intended use. It also
includes the initial estimate of the costs of dismantling
and removing the item and restoring the site on which
it is located.

Subsequent expenses and recognition:

Expenditure incurred after the property, plant and
equipment have been put into operation, such as
repairs and maintenance, are normally charged to the
Statement of Profit and Loss in the period in which the
costs are incurred. Major inspection and overhaul
expenditure is capitalized. Subsequently Property,
Plant and Equipment are carried at cost less
accumulated depreciation and accumulated impairment
losses, if any.

The gain or loss arising on the disposal or retirement
of an item of property, plant and equipment is
determined as the difference between the sales
proceeds and the carrying amount of the asset and is
recognized in the Statement of Profit and Loss on the
date of disposal or retirement.

Depreciation: Property, Plant and Equipments except
lease hold land are depreciated on Written Down
Method & SLM Method in the manner prescribed in
Schedule II to the Companies Act, 2013.

Financial Land Lease: Company has taken certain
lands on financial lease. The amount of lease has
been amortised over the period of lease.
Component accounting: When parts of an item of
property, plant and equipment have different useful
life, they are accounted for as separate items (Major
components) and are depreciated over the useful life
respectively.

Projects under which assets are not ready for
their intended use are disclosed under Capital
Work-in-progress.

2.3.7 Leases

Lease arrangements where the risks and rewards
incidental to ownership of an asset substantially vest
with the lessor are recognised as operating leases.
Lease hold land have been recognized as finance
lease as per IND -As 17 (Leases) and therefore
have been classified under the head of property
,plant and equipment and have been ammortised on

the basis of remaining life of the land on straight-line
basis.

Rental expense from operating leases is generally
recognised on a straight-line basis over the relevant
lease term other than where the rentals are
structured solely to increase in line with expected
general inflation to compensate for the increase in
lessor''s expected inflationary cost, such increase is
recognised in the year in which such benefits accrue.
In the event that lease premiums are paid to enter
into operating leases, such premiums are recognised
as a prepaid expenditure and amortised over the
period of lease.

2.3.8 Employee benefit expenses

a. Short - term Employee Benefits:-

All employee benefits payable wholly within twelve
months of rendering the service are classified as
short-term employee benefits and they are recognised
in the period in which the employee renders the related
services.

The Company recognises the undiscounted amount
of short term employee benefits expected to be paid
in exchange for services rendered as a liability after
deducting any amount already paid.

Bonus and Leave encashment expenses are paid in
the year in which they are incurred. Hence, they are
classified as short term benefits.

b. Post-employment Benefits:-

(a) Defined Contribution Plan: Contribution to PF
and ESI is recognised as an expense in the Statement
of Profit & Loss as it is incurred. There are no other
obligations other than the contribution payable to the
respective trust. Eligible employees receive benefits
from a provident fund which is a defined contribution
plan. Both the eligible employee and the Company make
monthly contributions to the provident fund plan equal
to a specified percentage of the covered employee''s
salary.

(b) Defined Benefit Plans : Retirement benefits in the
form of gratuity is determined on the basis of an
actuarial valuation using the projected unit credit
method as at Balance Sheet date.

2.3.9 Borrowing Cost

Borrowing cost that are attributable to the acquisition
or construction of qualifying assets are capitalized as
part of the cost of such assets. A qualifying assets is
one that takes necessarily substantial period of time
to get ready for its intended use. All other borrowing
cost are charged to revenue.

2.3.10 Earnings per share

• Basic earnings per share is computed using the net
profit for the year attributable to the shareholders''
and weighted average number of shares outstanding
during the year.

• Diluted earnings per share is computed using the net

profit for the year attributable to the shareholder'' and
weighted average number of equity and potential
equity shares outstanding during the year, except
where the result would be anti-dilutive.

2.3.11 Impairment of assets

An asset is considered as impaired when at the date
of Balance Sheet there are indications of impairment
and the carrying amount of the asset exceeds its
recoverable amount (i.e. the higher of the fair value
less cost to sell and value in use). The carrying
amount is reduced to the recoverable amount and
the reduction is recognized as an impairment loss in
the Statement of Profit and Loss. Any impairment gain
loss is transfarred to profit and loss.

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Mar 31, 2015

COMPANY INFORMATION

POLYCON International Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed at the Bombay stock Exchange. The company is engaged in the manufacturing and trading of PET Items like PET Bottles, PET Jars, PET Performs, Caps & Lids and LLDPE Rotomoulding Water Storage Tanks, PVC Profiles, Sections etc. Its manufacturing facilities are located in Jaipur & Bhiwadi, Rajasthan.

a) Basis of preparation of financial Statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India . The company has prepared these financial statements to comply in all material respects with the provisions of companies Act, 2013 ("the Act") and accounting standards notified under section 133 of the companies Act, 2013 read together with paragraph 7 of the companies ( Accounts) Rules, 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention. The financial statements are presented in lacs of Indian Rupees.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Schedule-III of the Companies Act, 2013.

The accounting Policies adopted in preparation of financial statements are consistent with those of the previous year.

b) Use of Estimates

The preparation of consolidated financial statements in conformity with the Generally Accepted Accounting Principles ('GAAP') IN India requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, assets and liabilities and disclosures relating to contingent liabilities as of the date of the consolidated financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in future periods.

c) Tangible fixed assets

Fixed Assets have been stated at cost net of Convert credit less accumulated depreciation. Cost of acquisition or construction is inclusive of direct cost, incidental expenses and borrowing cost related to such acquisition or construction.

d) Depreciation on tangible fixed assets

Depreciation has been provided using the written down value method at the rate determined based on the estimated useful lives of the tangible assets where applicable except the Plant and Machinery and Dies and Moulds purchased after 01.04.2004 - Straight Line Method at all the units, specified in the schedule II to the Act and in keeping with other provision of the said schedule.

Additions/deletions to fixed assets during the year are being depreciated on prorate from the date on which such assets are being capitalized/deleted.

e) Impairment of tangible assets

Impairment loss is provided to the extent that the carrying amount(s) of assets exceed their recoverable amount(s). Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash-flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal.

f) Investments

Investment are stated at cost.

g) Inventories

Inventories are valued at lower of cost or net realizable value as per stock taken, verified, valued and certified by the management. Cost of finished goods includes excise duty also.

h) Revenue Recognition

sales are recognized when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, sales taxes and excise duties (on goods manufactured and outsourced). It does not include inter-divisional transfers.

i) Expenditure

Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.

j) Retirement and other employee benefits

The Company contributes towards Provident fund and Family pension fund which are defined contribution schemes. Liability in respect thereof is determined on the basis of contribution required to be made under the statutes/rules.

Gratuity Liability, a defined benefit scheme, and provision for compensated absences is accrued and provided for on the basis of actuarial valuations made at the year end.

k) Borrowing costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

l) Taxes on Income

Tax expense comprises of both current and deferred tax at the applicable enacted/substantively enacted rates. Current tax represents the amount of income- tax payable/recoverable in respect of the taxable income/loss for the reporting period. Deferred tax represents the effect of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

m ) Provisions and contingencies

A provision is recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the Company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

n) Foreign Currency Transactions

Transactions in foreign currency are accounted at the exchange rate prevailing on the date of transactions. Foreign Currency Liabilities are stated at rates prevailing at the yearend if any. Any other exchange differences are recognized as revenue item.

o) Cenvat Credit/Value Added Tax

Cenvat/Value Added tax benefit is accounted for by reducing the purchase cost of material/fixed assets.

The Company has not allotted any fully paid up equity shares by way of bonus shares nor has bought back any class of equity shares during the period of five years immediately preceding the balance sheet date.

b) Terms/rights attached to equity shares :

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each equity shareholder is entitled to one vote per share. The Board of Directors have not declared Dividend during the year under review due to marginal profit. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount in proportion to their shareholding.

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Mar 31, 2014

A) Basis of preparation of financial Statements

The Accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards notified under Section 211(3c) of the Companies Act, 1956 and the relevant provisions thereof.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Revised Schedule-VI to the Companies Act, 1956.

Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

b) Use of Estimates

The preparation of consolidated financial statements in conformity with the Generally Accepted Accounting Principles (''GAAP'') IN India requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, assets and liabilities and disclosures relating to contingent liabilities as of the date of the consolidated financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in future periods.

c) Tangible fixed assets

Fixed Assets have been stated at cost net of Cenvat credit less accumulated depreciation. Cost of acquisition or construction is inclusive of direct cost, incidental expenses and borrowing cost related to such acquisition or construction.

d) Depreciation on tangible fixed assets

Depreciation on fixed assets is provided on written down value method at the rates and in the manner prescribed in schedule-XIV of the Companies Act, 1956 except the Plant and Machinery and Dies and Moulds puchased

after 01.04.2004 - Straight Line Method at all the units.

Additions/deletions to fixed assets during the year are being depreciated on prorate from the date on which such assets are being capitalized/deleted.

e) Impairment of tangible assets

Impairment loss is provided to the extent that the carrying amount(s) of assets exceed their recoverable amount(s). Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash- flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal.

f) Investments

Investment are stated at cost.

g) Inventories

Inventories are valued at lower of cost or net realizable value as per stock taken, verified, valued and certified by the management. Cost of finished goods includes excise duty also.

h) Revenue Recognition

sales are recognised when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, sales taxes and excise duties (on goods manufactured and outsourced). It does not include inter-divisional transfers.

i) Expenditure

Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.

j) Retirement and other employee benefits

The Company contributes towards Provident fund and Family pension fund which are defined contribution schemes. Liability in respect thereof is determined on the basis of contribution required to be made under the statutes/rules.

Gratuity Liability, a defined benefit scheme, and provision for compensated absences is accrued and provided for on the basis of acturial valuations made at the year end.

k) Borrowing costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended

use. All other borrowing costs are charged to revenue.

l) Taxes on Income

Tax expense comprises of both current and deferred tax at the applicable enacted/substantively enacted rates. Current tax represents the amount of income-tax payable/recoverable in respect of the taxable income/ loss for the reporting period. Deferred tax represents the effect of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

m) Provisions and contingencies

A provision is recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. A contingent liability is disclosed when the Company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

n) Accounting of Subsidy

Amount of subsidy granted under Rajasthan Investment Promotion Scheme towards payment of interest and wages in respect of expansion project have been accounted for as and when received by the Company.

o) Foreign Currency Transactions

Transactions in foreign currency are accounted at the exchange rate prevailing on the date of transactions. Foreign Currency Liabilities are stated at rates prevailing at the year end if any. Any other exchange differences are recognized as revenue item.

p) Cenvat Credit/Value Added Tax

Cenvat/Value Added tax benefit is accounted for by reducing the purchase cost of material/fixed assets.

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Mar 31, 2012

A) Basis of preparation of Financial Statements The Accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards notified under Section 211(3c) of the Companies Act, 1956 and the relevant provisions thereof.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Revised Schedule-VI to the Companies Act, 1956.

Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities. '

b) Use of Estimates

The preparation of consolidated financial statements in conformity with the generally accepted accounting principles ('GAAP') IN India requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, assets and liabilities and disclosures relating to contingent liabilities as of the date of the consolidated financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in future periods.

c) Tangible fixed assets

Fixed Assets have been stated at cost net of Convert credit less accumulated depreciation. Cost of acquisition or construction is inclusive of direct cost, incidental expenses and borrowing cost related to such acquisition or construction.

d) Depreciation on tangible fixed assets .

Depreciation on fixed assets is provided on written down value method at the rates and in the manner prescribed in schedule-XIV of the Companies Act, 1956 except the Plant and Machinery and Dies and Moulds purchased after 01.04.2004 - Straight Line Method at all the units.'

Additions/deletions to fixed assets during the year are being depreciated on prorate from the date on which such assets are being capitalized/deleted.

e) Impairment of tangible assets

Impairment loss is provided to the extent that the carrying amount(s) of assets exceed their recoverable . amount(s). Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash-flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm's length transaction between

1 knowledgeable, willing parties, less the costs of disposal.

f) Investments

Investment are stated at cost.

g) Inventories

Inventories are valued at lower of cost or net realizable value as per stock taken, verified, valued and certified by the management. Cost of finished goods includes excise duty also.

h) Revenue Recognition

sales are recognized when the substantial risks and rewards of ownership in the goods are transferred to the buyer, upon supply of goods, and are recorded net of trade discounts, rebates, sales taxes and excise duties (on goods manufactured and outsourced). It does not include inter-divisional transfers.

i) Expenditure

Expenses are accounted for on accrual basis and ' provision is made for all known losses and liabilities.

j) Retirement and other employee benefits

The Company contributes towards Provident fund and Family pension fund which are defined contribution schemes. Liability in respect thereof is determined on the basis of contribution required to be made under the statutes/rules.

Gratuity Liability, a defined benefit scheme, and provision for compensated absences is accrued and provided for on the basis of actuarial valuations made at the year end.

k) Borrowing costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. all other borrowing costs are charged to revenue.

I) Taxes on Income

Tax expense comprises of both current and deferred tax at the applicable enacted/substantively enacted rates. Current tax represents the amount of income-tax payable/recoverable in respect of the taxable income/ loss for the reporting period. Deferred tax represents the effect of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

m) Provisions and contingencies

A provision is recognized when the Company has a legal and .constructive obligation as a result of a past event, for' which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liability is disclosed when the Company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

Notes on Financial statements for the Year ended 31st March, 2012

n) Accounting of Subsidy .

Amount of subsidy granted under Rajasthan Investment Promotion Scheme towards payment of interest and wages in respect of expansion project have been accounted for as and when received by the Company.

o) Foreign Currency Transactions

Transactions in foreign currency are accounted at the exchange rate' prevailing on the date of transactions. Foreign Currency Liabilities are stated at rates prevailing . at the yearend if any. Any other exchange differences are recognized as revenue item.

p) Convert Credit/Value Added Tax

Convert/Value Added tax benefit is accounted for by reducing the purchase cost of material/fixed assets.

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Mar 31, 2011

Basis of Accounting

a) The financial statements are prepared under the Historical Cost Convention, based on assumption of going concern, consistency and accrual and in accordance with the standards on accounting issued by the Institute of Chartered Accountants of India and referred to in section 211(3) of the Companies Act, 1956 except few items which are recorded on cash basis like bonus etc.

b) The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual and estimates are recognized in the period in which the results are known/materialized.

Revenue Recognition

Both income and expenditure items are recognized on accrual basis. Revenue from sale of goods including manufactured products is recognized upon passage of title to the customers which generally coincides with delivery.

Fixed Assets

Fixed Assets have been stated at cost net of Cenvat credit less accumulated depreciation. Cost of acquisition or construction is inclusive of direct cost, incidental expenses and borrowing cost related to such acquisition or construction.

Depreciation

a) Depreciation on fixed assets is provided on written down value method at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956 except the Plant and Machinery and Dies & Moulds purchased after 01.04.2004 - Straight Line Method at all the units.

Additions/deletions to fixed assets during the year are being depreciated on prorate from the date on which such assets are being capitalized/deleted.

Investment

Investment are stated at cost.

Inventories

Inventories are valued at lower of cost or net realizable value as per stock taken, verified, valued and certified by the management. Cost of finished goods includes excise duty also.

Accounting of subsidy

Amount of subsidy granted under Rajasthan Investment Promotion Scheme towards payment of interest and wages in respect of expansion project have been accounted for as and when received by the Company.

Retirement Benefits

The total future liability for retiring Gratuities payable in accordance with the payment of Gratuity Act and the Company's Rules is actually determined as on 31st March, 2011 at Rs. 34,20,439/- (previous year Rs. 31,62,113/-)

Foreign Currency Transactions

Transactions in foreign currency are accounted at the exchange rate prevailing on the date of transactions. Foreign Currency Liabilities are stated at rates prevailing at the year-end if any. Any other exchange differences are recognized as revenue item.

Taxes on income

(i) Current Taxation :

Provision for current income tax is made based on the tax liability computed after considering tax allowances and exemptions.

(ii) Deferred Taxation

Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted on the Balance Sheet date.

Deferred Tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Cenvat Credit/Value Added Tax

Cenvat/Value Added Tax benefit is accounted for by reducing the purchase cost of material/fixed assets.

Borrowing Costs

Borrowing costs that are attributable to the acquisition/construction of fixed assets are capitalized as part of the cost of the respective assets. Other borrowing costs are recognized as expenses in the year in which they arise.

Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on the management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjust to reflect the current management estimates.

2. In accordance with the Scheme of Arrangement and Demerger which was approved by the Hon’ble High Court of Rajasthan, Jaipur Bench on 21st July, 2011, the business undertaking of Chennai unit of M/s. Polycon International Limited, herein after referred to as demerged undertaking has been demerged and vested in M/s. Vinayak Polycon International Limited (the Resulting Company), with effect from the appointed date i.e. April 01, 2010. The Scheme has accordingly been given effect to in these accounts.

This demerged undertaking is engaged in carrying on the business of manufacture and sale of PET Containers such as PET Bottles, Jars, Lids/caps, Water Storage Tanks, PVC Profiles and allied items.

In terms of the scheme, all the assets and liabilities of the demerged undertaking have been accounted for at their carrying amounts on April 01, 2010. As per the Scheme and in consideration of the above, the Resulting Company will issue 30,31,242 equity shares of Rs.10/- each aggregating to Rs. 303.12 lakhs. The Resultant Company M/s. Vinayak Polycon International Limited, will issue 62 shares against every 100 shares held by the shareholders of M/s. Polycon International Limited.

Consequent upon giving effect to the Scheme of Demerger, an amount of Rs.3,03,12,420.00 advanced, lent/given by demerged company M/s. Polycon International Limited to the Resultant Company, M/s. Vinayak Polycon International Limited shall stand cancelled/squared-up and same has been adjusted against Reserve & Surplus in compliance to AS-14 of The Institute of Chartered Accountants of India.

In view of the aforesaid demerger with effect from April 01, 2010, the figures for the current year are not comparable with those of the previous year.

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Mar 31, 2010

Basis of Accounting

a) The financial statements are prepared under the Historical Cost Convention, based on assumption of going concern, consistency and accrual and in accordance with the standards on accounting issued by the Institute of Chartered Accountants of India and referred to in section 211(3) of the Companies Act, 1956 except few items which are recorded on cash basis like bonus etc.

b) The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual and estimates are recognized in the period in which the results are known/materialized.

Revenue Recognition

Both income and expenditure items are recognized on accrual basis. Revenue from sale of goods including manufactured products is recognized upon passage of title to the customers which generally coincides with delivery.

Fixed Assets

Fixed Assets have been stated at cost net of Cenvat credit less accumulated depreciation. Cost of acquisition or construction is inclusive of direct cost, incidental expenses and borrowing cost related to such acquisition or construction.

Depreciation

Depreciation on fixed assets is provided on written down value method at the rates and in the manner prescribed in Schedule-XIV of the Companies Act, 1956, except the fallowings, depreciation have been charged as under :-

a) Plant & Machinery and Dies & Moulds purchased after 01-04-2004 Straight Line Method at all the units except additions made after 01-04-2009 at Chennai Unit.

b) Plant & Machinery and Dies & Moulds purchased after 1.4.2009 at Chennai unit on WDV method.

Additions/deletions to fixed assets during the year are being depreciated on prorata from the date on which such assets are capitalized/deleted.

Investment

Investment are stated at cost

Inventories

Inventories are valued at lower of cost or net realizable value as per stock taken, verified, valued and certified by the management. Cost of finished goods includes excise duty also.

Accounting of subsidy

Amount of subsidy granted under Rajasthan Investment Promotion Scheme towards payment of interest and wages in respect of expansion project have been accounted for as and when received by the Company.

Retirement Benefits

The total future liability for retiring Gratuities payable in accordance with the payment of Gratuity Act and the Companys Rules is actually determined as on 31st March, 2010 at Rs. 31,62,113/- (previous year Rs. 27,22,033/-)

Foreign Currency Transactions

Transactions in foreign currency are accounted at the exchange rate prevailing on the date of transactions. Foreign Currency Liabilities are stated at rates prevailing at the year-end if any. Any other exchange differences are recognized as revenue item.

Taxes on income

(i) Current Taxation :

Provision for current income tax is made based on the tax liability computed after considering tax allowances and exemptions.

(ii) Deferred Taxation

Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted on the Balance Sheet date.

Deferred Tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Cenvat Credit/Value Added Tax

Cenvat/Value Added Tax benefit is accounted for by reducing the purchase cost of material/fixed assets.

Borrowing Costs

Borrowing costs that are attributable to the acquisition/ construction of fixed assets are capitalized as part of the cost of the respective assets. Other borrowing costs are recognized as expenses in the year in which they arise.

Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on the management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjust to reflect the current management estimates.

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Mar 31, 2009

Basis of Accounting

a) The financial statements are prepared under the Historical Cost Convention, based on assumption of going concern, consistency and accrual and in accordance with the standards on accounting issued by the Institute of Chartered Accountants of India and referred to in section 211(3) of the Companies Act, 1956 except few items which are recorded on cash basis like bonus etc.

b) The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual and estimates are recognized in the period in which the results are known/materialized.

Revenue Recognition

Both income and expenditure items are recognized on accrual basis. Revenue from sale of goods including manufactured products is recognized upon passage of title to the customers which generally coincides with delivery.

Fixed Assets

Fixed Assets have been stated at cost net of Cenvat credit less accumulated depreciation. Cost of acquisition or construction is inclusive of direct cost, incidental expenses and borrowing cost related to such acquisition or construction.

Depreciation

Depreciation on fixed assets is provided on written down value method at the rates and in the manner prescribed in Schedule-XIV of the Companies Act, 1956, except the Plant & Machinery and Dies & Moulds purchased after 01st April, 2004, depreciation has been provided on Straight Line Method (SLM). Additions/deletions to fixed assets during the year are being depreciated on prorata from the date on which such assets are capitalized/deleted.

Investment

Investment are stated at cost

Inventories

Inventories are valued at lower of cost or net realizable value as per stock taken, verified, valued and certified by the management. Cost of finished goods includes excise duty also.

Accounting of subsidy

Amount of subsidy granted under Rajasthan Investment Promotion Scheme towards payment of interest and wages in respect of expansion project have been accounted for as and when received by the Company. Retirement Benefits

The total future liability for retiring Gratuities payable in accordance with the payment of Gratuity Act and the Companys Rules is actually determined as on 31st March, 2009 at Rs. 2722033/- (previous year Rs. 25,06,630/-)

Foreign Currency Transactions

Transactions in foreign currency are accounted at the exchange rate prevailing on the date of transactions. Foreign Currency Liabilities are stated at rates prevailing at the year- end if any. Any other exchange differences are recognized as revenue item.

Taxes on income

(i) Current Taxation :

Provision for current income tax is made based on the tax liability computed after considering tax allowances and exemptions.

(ii) Fringe Benefit Tax

Fringe benefit tax is determined at current applicable rates on expense falling within the ambit of "Fringe benefit" as defined under the Income Tax Act, 1961.

(iii) Deferred Taxation

Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted on the Balance Sheet date.

Deferred Tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Cenvat Credit/Value Added Tax

Cenvat/Vaiue Added Tax benefit is accounted for by reducing the purchase cost of material/fixed assets.

Borrowing Costs

Borrowing costs that are attributable to the acquisition/ construction of fixed assets are capitalized as part of the cost of the respective assets. Other borrowing costs are recognized as expenses in the year in which they arise.

Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on the management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjust to reflect the current management estimates.